As soon as the debtor is declared bankrupt, all his properties are placed in the hands of an official receiver appointed by the court to conduct bankruptcy proceedings.
When the official receiver takes over the property of the bankrupt , it becomes his duty to sell the property at reasonable price and use the money from the sale to pay the creditors up to the extent possible.
POWERS OF OFFICIAL RECEIVER
The powers of the official receiver are considered discretionary
- To sell any of the property of the bankrupt
- To give receipts for money received by him
- To distribute the money received as dividends amongst the creditors from time to time
- To carry on the business of the bankrupt as far as it may be necessary for the benefit of winding up.
- To institute, defend or continue with any case relating to the property of the Bankrupt
- To employ and advocate or Agent to take any legal proceedings or do any business which may be authorized by court
- To accept any money as consideration for the sale of any property on such terms as the court may think fit.
- To mortgage or pledge any property of the bankrupt to raise money to pay debts or carry on the business of the bankrupt.
- To refer any dispute to arbitration
- To divide any property which can not be advantageously sold amongst the creditors.
DUTIES OF OFFICIAL RECEIVER
The duties of the Official receiver are considered Mandatory
- To collect and take into custody and control all the books, documents and assets of the bankrupt
- To sell the property of the bankrupt with all convenient speed and in the most profitable manner.
- To conduct himself with honesty and impartiality while distributing the money received by him amongst the creditors
- To maintain proper books of accounts and submit them to the court periodically as may be directed
- To call meetings of creditors from time to time and pay attention to their wishes at such meetings.
THE MANAGEMENT SYLLABUS
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